Squarespace, Inc.

Good afternoon. Good evening. My name is Felicia. I'll be your conference operator today. At this time, I would like to welcome everyone to Squarespace's third quarter 2021 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star followed by two. Thank you. Christopher Tu, you may now begin your conference call.

Good afternoon, and thank you for joining us for Squarespace's third quarter 2021 earnings call. My name is Christopher Chu, and I'm the head of investor relations and corporate development at Squarespace. With me today are Anthony Castellana, founder and CEO, and Marcella Martin, CFO. They will share some prepared remarks and then open up the call for questions. On today's call, we'll be referencing both GAAP and non-GAAP financial results and operating metrics. You can find additional information on how we calculate any of the metrics discussed on this call, including a reconciliation of GAAP to non-GAAP measures in today's press release, which can be found in the investor relations section of our website. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. The matters we'll be discussing include forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which include but are not limited to those related to our future financial results, new product introductions, and the company's marketing strategy. These forward-looking statements are subject to risks and uncertainties that are discussed in detail in our documents filed with the SEC. Actual results may differ materially from those contained in the forward-looking statements. Please take a look at our filings with the SEC for discussion of the factors that could cause the results to differ. Any forward-looking statements that we make on this call are based on assumptions as of today, November 8, 2021, and we undertake no obligation to update these statements as a result of new information or future events. I'll now turn the call over to Anthony.

Thank you, Christopher. Good afternoon, everyone. Welcome. My name is Anthony Castellano, founder and CEO of Squarespace. Thank you for joining us today as we report another strong quarter of growth and profitability. At Squarespace, we exist to help people with creative ideas stand out and succeed. And as more people choose to turn their passions into ventures, we strive to be the best company to support them as they differentiate themselves, grow their audience, and most importantly, transact with their customers. Our belief in this mission is as strong as ever. During the pandemic, it became increasingly important for businesses to digitize, develop an online presence, and engage with their community. The pandemic accelerated existing trends around e-commerce, solidifying the importance of businesses' transactions with their customers online beyond just selling goods. We believe these trends will continue to define e-commerce. Squarespace empowers and makes it easier for anyone to make great things with an impactful and beautiful online presence. During the quarter, we took significant steps to scale our business and introduce new differentiated product features to meet the evolving needs of our customers as an all-in-one platform. We continue to execute across several growth levers, including deeper penetration of multimodal commerce. Commerce is a critical growth driver moving forward as we continue to expand our offerings for consumers. New and renewed marketing campaigns with some of the biggest global brands, which highlight the diverse selling opportunities available to Squarespace platform. continue to add national expansion, now to more than 200 countries and territories with eight languages and growing, as well as a revamped Circle professional referral program. Before Marcel does the financial details, I'd like to highlight a few notable achievements this quarter. First, we surpassed a significant milestone by crossing 4 million unique subscriptions, a testament to our all-in-one platform and Squarespace's ability to continue to attract new customers. Second, our revenue grew 24% year over year, an achievement against a strong Q3 in 2020. Also, on a trailing 12-month basis, we achieved $749 million in revenue, of which $210 million was commerce-related revenue. We've done so while maintaining strong gross margins of 84%. Finally, our adjusted EBITDA and unlevered free cash flow this quarter exceeded the high end of our guidance, which gives us the flexibility to invest further in a business. We believe our combination of scale, growth, and profitability places us in an elite class of technology companies with compelling financial profiles. There are over 800 million small businesses and self-employed ventures globally that need our support. We remain confident in the long-term trajectory of the creator economy and our many opportunities for future growth as we continue to scale our business profitably. In September, to support our new platform vision of everything to sell anything, or what you have all known as our multimodal commerce approach, we have announced a series of new product features and improvements to existing products focused on helping our customers sell online in multiple ways across physical products, digital content, classes, appointments, and reservation. With more and more people thinking up creative ways to sell the things they're passionate about, we're focused on providing today's entrepreneurs with everything they need to thrive all in one seamless integrated platform. To highlight two specific new launches as part of our roundup, first, we launched Squarespace Video Studio, which is an app that helps anyone create professional-level videos that promote their business and tell their story effortlessly. The app pulls in content and brand elements from their website in order to create marketing materials that mimic their site design. Within our many updates to Unfold, our award-winning app to help anyone stand out on social media, we'd like to highlight BioSites. BioSites are quick, simple websites that users can create directly on their phone intended to go into social media bios. These simple sites can route visitors to deeper content and functionality depending on what the creator would like to optimize for. This enables linking to other sites, monetizing content, or collecting tips. These updates were inspired by the trends of the evolving small business landscape and a flourishing creator economy. With services-based businesses poised for increasing levels of success, as many businesses broaden their way to transact. Everything to Sell Anything is a broad vision to help our customers convert their dreams into ventures. The introduction of these products and updates was done in conjunction with the Launch Bar Everything to Sell Anything campaign, which we continue to run internationally to reinforce our positioning. This campaign was syndicated by many news outlets, and we received an incredibly positive response. As part of our ongoing investment in international markets, we've begun launching local campaigns as well, starting with Australia and the United Kingdom. For instance, in Australia, our Make a Name for Yourself campaign aimed to inspire, encourage, and celebrate local entrepreneurship. The campaign aims to bold individuals to turn their personal experiences and ideas into a beautiful online presence reflective of who they are. I'm incredibly excited to pair our evolving platform and product innovations with such a beautiful and telegraphic campaign, which I think resonates very well with the next generation of entrepreneurs and creators. I'm looking forward to seeing everything they do with Squarespace. With that, I pass it to Marcella Martin, our CFO, who will walk you through the financials.